Committee hears details of proposed transportation revenue package in House Bill 2043

House staff told the House Transportation Committee on March 25 that a proposed substitute for House Bill 2043 would add multiple new revenue sources to support the state's transportation spending plans.

“House bill 2043 concerns transportation resources,” said Jennifer Harris, staff to the committee. Harris said the transportation budget for the 2025–27 biennium is $14,500,000,000 and that recent revenue and cost changes have created a multibillion-dollar shortfall the bill is intended to address.

Michael Hirsch, committee staff, briefed members on the substitute’s provisions. He said the bill would raise the state motor fuel tax by 9¢ per gallon beginning July 1, 2025, and increase the special-fuel (diesel) differential by an additional 3¢ on July 1, 2025, with another 3¢ on July 1, 2027. Hirsch said those fuel-rate increases are projected to raise about $1.8 billion statewide over six years and the diesel differential roughly $155 million over six years.

The substitute also raises motor-vehicle sales and use taxes. Hirsch said an additional 0.3% retail sales tax on vehicle sales would be expanded to 1% beginning Jan. 1, 2026, with…